Coastal's Bua Ban Appraisal Encounters Additional Pay

Coastal announced the successful results of the Bua Ban North A-07 appraisal well.

The Bua Ban North A-07 well was drilled to a depth of 3,750 feet TVD on the eastern flank of the Bua Ban North A field 1.3 miles south of the A-05 discovery well. The A-07 encountered 48 feet of net pay sands in the primary Upper Miocene objective with 26% average porosity. Pressure data indicate that the A-07 well is in communication with the A-05 well. The A-07 well intentionally did not penetrate the lower section of the reservoir, in order to stay away from the oil water contact. Based on correlations from other wells in the field it is estimated that an additional 15 - 20 feet of sand exists below the bottom of the logged interval and should be above the known water contact at 3,790 feet TVD.

Randy Bartley, President & Chief Executive Officer, commented, "The A-07 well confirms that the eastern fault block of the Bua Ban North A field extends to the south and that the structural closure of this fault block is approximately 600 acres, which is in line with expectations. The well encountered approximately 14 feet more net pay than was seen in the upper section of the Miocene in the A-05 well, with an additional 15 - 20 feet of pay sand which may be present below logged TVD.

"We plan to drill two to three more wells at Bua Ban North A before production facilities arrive on location in late October. Our current offshore production has improved to 15,500 bopd with total company production at 17,500 boepd."